Colt’s Officially Leaves Bankruptcy Court
WEST HARTFORD, Conn. (AP) _ Colt’s Manufacturing Co. is officially out of bankruptcy protection.
Final agreements have been signed to conclude the gunmaker’s two-year tenure in Chapter 11, company officials said Thursday.
Colt’s, which first filed for protection from its creditors in 1992, is being taken over by a partnership headed by Zilkha & Co., a New York investment firm.
The partnership paid about $27 million for an 85 percent stake and has assumed another $27 million or so in liabilities.
The state also has paid $10 million to acquire the rights to Colt’s famous name from a group of investors. The name was split off from the company as part of a 1990 buyout.
The plan was approved by U.S. Bankruptcy Judge Robert L. Krechevsky on Sept. 16. Colt’s emergence from Chapter 11 means the company will be better able to compete for military contracts, officials said.